Reconfiguration, restructuring and firm performance: Dynamic capabilities and environmental dynamism

Girod, Stéphane; Whittington, Richard

doi:10.1002/smj.2543

Cited by 230 publications

(241 citation statements)

References 56 publications

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“…By including the more recent works of Girod and Whittington (2017 ); Whittington et al ( 2017 );and Jarzabkowski, Kaplan, Seidl, and Whittington ( 2016 ), which emphasize sociological perspectives, we add much-needed detail to theory building. For instance, these scholars highlight the importance of incorporating multilevel analysis in understanding strategy.…”

Section: Discussionmentioning

confidence: 99%

“…More recent streams of strategic management literature elaborate on microlevel aspects of strategy making in companies (Whittington, 2007). This literature emphasizes sociological perspectives for understanding the relevance of managerial decisions and organizational processes in strategy implementation ( Girod & Whittington, 2017 ;Jarzabkowski, Kaplan, Seidl, & Whittington, 2016 ;Whittington, Yakis-Douglas, Ahn, & Cailluet, 2017 ). The sociological view describes what managers do, categorizing their daily strategy-making efforts and tactics either as involving strategizing or organizing work (Whittington, 2003 ).…”

Section: Strategic Management Perspectives On Hrd Leanmentioning

confidence: 99%

See 1 more Smart Citation

Towards an Understanding of HRDLean Strategy Linkages: A Multicase Study of Four U.S. Based Firms

Alagaraja¹,

Egan²,

Woodman³

2017

Human Resource Dev Quarterly

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The link between HRD and Lean strategy is not well explored in the existing literature and lacks empirical depth regarding how the two conceptual domains are connected. Specifically, we focus on the role of HRD in organizations undergoing Lean strategy implementation. We adopt a qualitative multicase study approach and identify ways in which organizations develop HRD and Lean strategy linkages (HRDLean). Building on previous research, we investigate four firms, all involved in the implementation of Lean strategy, and present a three‐phase emergent model that reflects our study findings regarding the distinct HRDLean linkages developed in these organizations. The model representing the case study data identifies sense making, alignment, and value‐enabling mechanisms as three distinctive outcomes that enhance the value of HRD in Lean strategy implementation. The strength of the HRDLean linkages demonstrate the value of integrating HRD with Operations for sustaining unit‐level performance and positively influence the perceptions of HRD contributions to organizational strategy in general. The implications for enhancing the role of HRD in organizations implementing strategy are explored.

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Section: Discussionmentioning

confidence: 99%

Section: Strategic Management Perspectives On Hrd Leanmentioning

confidence: 99%

Towards an Understanding of HRDLean Strategy Linkages: A Multicase Study of Four U.S. Based Firms

Alagaraja¹,

Egan²,

Woodman³

2017

Human Resource Dev Quarterly

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“…Environmental dynamism represents the magnitude and frequency of environmental change, as well as irregularity in patterns of environmental change (Cooper et al, 2014;Miller & Shamsie, 1996). Dynamic environments require extensive monitoring, along with creativity and agility in decisionmaking from their TMTs (Cannella, Park, & Lee, 2008;Girod & Whittington, 2017;Hambrick et al, 2015). Thus, numerous studies have found that diversity within the TMT, the availability of broad perspectives is essential to compete in a dynamic environment (Glick, Miller, & Huber, 1993;Hambrick et al, 1998;O'Reilly & Flatt, 1989).…”

Section: The Moderating Role Of Environmental Dynamismmentioning

confidence: 99%

Top management team demographic‐faultline strength and strategic change: What role does environmental dynamism play?

Richard

Wu²,

Markóczy

et al. 2019

Strategic Management Journal

139

102

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Research summary Drawing on the demographic faultline perspective and the concept of attribute‐specific faultlines, we investigate the effect of top management team (TMT) relationship‐related (gender, age, educational level) and task‐related (functional background, tenure) faultline strengths on strategic change. In a panel study (2003–2015), we find that TMT relationship‐related faultline strength (especially educational‐level) negatively influences strategic change whereas TMT task‐related faultline strength positively affects strategic change. Environmental dynamism reduces the negative effect of TMT gender and educational‐level faultline strengths on strategic change while in fact revealing a notable positive effect between TMT age‐faultline strength and strategic change. Additionally, environmental dynamism strengthens the positive effects of task‐related TMT faultline strength on strategic change. We offer theoretical and practical implications to both the demographic faultlines and upper echelons research domains. Managerial summary Top management teams (TMTs) in firms can fracture into subgroups based on demographic characteristics (e.g., age, gender, and education level) as well as based on task‐related characteristics (e.g., functional background, and tenure). We call the former relationship‐related faultlines and the latter task‐related faultlines. We predict and find that stronger relationship based faultlines hinders between subgroup cohesion, reducing TMTs' ability to initiate strategic change. We also predict and find that stronger task‐related faultlines facilitate inter‐subgroup knowledge‐sharing, improving TMTs' ability to initiate strategic change. We find that environmental dynamism reduces the negative effect of most relationship‐related faultlines (except age where this effect is positive) on strategic change, while strengthening the positive effect of task‐related faultline strengths on strategic change.

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“…As discussed above, environmental dynamism provides opportunities for firms to utilize dynamic capabilities and change their resource base. However, previous theorizing regarding the role of dynamism assumes that ‘resources can be quickly adjusted through portfolio additions and deletions, while ineffective reconfigurations can be relatively easily reversed’ (Girod and Whittington, , p. 3). This assumption may become less tenable in environments that are not munificent, as firms often struggle to find resources to buffer against sensing activities that yield little novel insights, seizing of opportunities that turn out less promising, or implementing reconfigurations that come out ineffective (Aragon‐Correa and Sharma, ).…”

Section: Theory and Hypothesesmentioning

confidence: 99%

When do Dynamic Capabilities Lead to Competitive Advantage? The Importance of Strategic Fit

Fainshmidt

Wenger

Pezeshkan

et al. 2018

J Management Studies

201

131

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Recent studies suggest the relationship between dynamic capabilities and competitive advantage may be jointly affected by organizational and environmental factors. We enrich this nascent perspective by developing a configurational theoretical framework – underpinned by the mechanism of strategic fit – wherein dynamic capabilities lead to a competitive advantage when they support a strategic orientation appropriate for the levels of dynamism and munificence in the environment. Results of a fuzzy‐set Qualitative Comparative Analysis using primary data show that dynamic capabilities lead to a competitive advantage in dynamic, munificent environments by enabling the combination of differentiation and low‐cost orientations. In stable, non‐munificent environments, dynamic capabilities are effective in support of a low‐cost orientation. The central insight of this study is that the relationship between dynamic capabilities and competitive advantage is contingent upon the strategic fit between organizational and environmental factors, contributing to a more rigorous and configurational dynamic capabilities view.

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Reconfiguration, restructuring and firm performance: Dynamic capabilities and environmental dynamism

Cited by 230 publications

References 56 publications

Towards an Understanding of HRDLean Strategy Linkages: A Multicase Study of Four U.S. Based Firms

Towards an Understanding of HRDLean Strategy Linkages: A Multicase Study of Four U.S. Based Firms

Top management team demographic‐faultline strength and strategic change: What role does environmental dynamism play?

When do Dynamic Capabilities Lead to Competitive Advantage? The Importance of Strategic Fit

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